Posted by: Roby Robertson | August 29, 2008

Wish All Lake Norman and Charlotte Area Mortgage Brokers Understood our NC contracts

Some Lake Norman area Lenders need some education on our contracts

Lake Norman Lenders

I just closed on a transaction that was very frustrating and didn’t need to be!  My client in the Lake Norman area is a sibling of one of our Real Living Agents.  In an effort to assist them, we agreed to credit the buyer back a portion of our commissions.  This is not that uncommon in today’s market and we have also done it for non-family clients as well.

As we all know this amount must be a line item on the HUD statement and must be approved by the lender.  This is where the rubber hit the road.  My clients lender told me that I had to create an amendment to the contract that both the buyer and seller had to sign for us to be able to credit the buyer. He claimed that all line items on the HUD were amendments to the transaction and thus signed by both parties.

I had to educate him that commissions are not a part of the real estate transaction that I could not create an amendment.  I am not an attorney and can’t modify or create legal documents.  I also had to educate him that this money was between me, the lender and the buyer.  The real estate transaction was totally separate.  This whole process took 2 more days than it should have.  I still had to create a letter stating where the monies were coming from, however this was not an amendment to the real estate contract.  I realize some of this is semantics, however if lenders understand our contracts and how they work, this type of thing would not happen. 

On another note:  Appraisers these days!  Egads…

Lake Norman Appraisers

Our appraiser had taken pictures of 4 boards on the exterior of the house (actually 4 hard board siding boards) and said they are showing age and needed to be painted.  Notice he did not say replaced.  He would not sign off on the appraisal until this was done.  The appraiser delivered this report one day before closing.  So me and my buyer had to get the sellers permission, paint these 4 boards, take pictures, get them to the appraiser before he would sign off.  Now I have to ask.  Did these 4 boards really tarnish the value of the home.  (Price, 281K).  With everything else being OK, did the house really not appraise without this touch up paint.   

We Realtors really do deal with allot of different scenarios on every transaction.  Add to this the Lake Norman Lake front property and all the inspections and surveys dealing with them and you will know that we really have to know our stuff to make sure our clients are well represented. 

It never ceases to amaze me at what can go awry with these transactions.  I love Lake Norman and would not want to sell anywhere else but it has also taken a reevaluation of temperament and patience on my part and I would not recommend it to everyone!  However, I love it!


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